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Insolvency Act 1985

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6(1)For subsection (2) of section 630 (responsibility for company's fraudulent trading) there shall be substituted the following subsection—

“(2)The court, on the application of the liquidator, may declare that any persons who were knowingly parties to the carrying on of the business in the manner above mentioned are to be liable to make such contributions (if any) to the company's assets as the court thinks proper.”

(2)In subsection (3) of that section for the words "the official receiver or the liquidator (as the case may be)" there shall be substituted the words " the liquidator ".

(3)After subsection (5) of that section there shall be inserted the following subsection—

“(5A)Where the court makes a declaration under subsection (2) above in relation to a person who is a creditor of the company, it may direct that the whole or any part of any debt owed by the company to that person and any interest thereon shall rank in priority after all other debts owed by the company and after any interest on those debts.”

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